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Bankruptcy action over QUT 18C claim

The woman who unsuccessfully sued three Queensland University of Technology students over what she alleged were racist Facebook posts is facing a bankruptcy action.

Two of the students sued by Cindy Prior have launched the action against her in the Federal Circuit Court over unpaid costs.

Ms Prior, an indigenous woman, had sued Alex Wood, Calum Thwaites and Jackson Powell for damages totalling $250,000 under section 18C of the Racial Discrimination Act.

But the case was thrown out in November and she was ordered to pay the students' court costs.

Mr Thwaites and Mr Powell lodged the bankruptcy action on May 5.

The matter has been set down for a June 7 court date.

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The bankruptcy notice relates to $10,780 in unpaid costs, News Corp reports.

It comes after Justice John Dowsett also denied Ms Prior leave to appeal against his decision on March 3.

Ms Prior had argued she was unable to continue working face-to-face with white people following a series of Facebook posts after Mr Wood and two other students were asked to leave an indigenous-only computer lab at QUT in 2013.

Section 18C makes it unlawful for anyone to "offend, insult, humiliate or intimidate" another person or group on the grounds of race, colour or ethnicity.

AAP